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E BUSINESS > Financial analysis > Flashcards

Financial analysis Flashcards

1
Q

benchmarking

A

motivates employessd and helps managers evaluate performance, comparing a comany with its prior performance or with best practices from other companies

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2
Q

participative budget

A

those who are directly impacted by a budget are involved in the development of the budget

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3
Q

Budgetary slack

A

managers intentionally understate expected revenues or overstate expected expenses

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4
Q

zero-based budget

A

all revenues and expenses must be justified for each new period. The previous year’s actual results are ignored

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5
Q

strategic budget

A

long-term financial plan used to coordinate the activities needed to achieve the long-term goals

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6
Q

operational budget

A

short-term financial plan used to coordinate the activities needed to achieve the short-term goals

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7
Q

continuous budget

A

operational budget that involve continuously adding one additional month as each month goes by

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8
Q

static budget

A

only one level of sales volume

master budget is a static budget, so it is prepared for only one level of sales volumes

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9
Q

flexible budget

A

for various levels of sales volume.
separate variable costs from fixed costs
the variable costs put the flex in the flexible budget

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10
Q

master budget

A

set of budgeted financial statements and supporting schedules for an entire organization

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11
Q

operating budgets

A

set of budgets that projects sales revenue, cost of goods sold, and selling and administrative expenses, all ow which feed into the cash budget and then the budgeted financial statements

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12
Q

capital expenditure budget

A

presents company’s plan for purchasing long-term assets

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13
Q

financial budget

A

includes the cash budget and the budgeted financial statements

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14
Q

cash budget

A

details how the business expects to go from the beginning cash balance to the desired ending cash balances

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15
Q

GOGS how to calculate

A

beginning inventory + purchases - ending inventory

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16
Q

purchases how to calculate

A

Gogs + ending inventory - beginning inventory

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17
Q

budget performance report

A

report that summarizes the actual results, budgeted amounts and the differences

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18
Q

variance

A

the difference between an actual amount and the budgeted amoun

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19
Q

static budget variance

A

difference between actual results and the expected results in the static budget

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20
Q

to create flexible budget you need:

A

budgeted selling price per unit, budgeted variable cost per unit, total budgeted fixed costs, different levels within the relevant range

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21
Q

flexible budget variance

A

difference betwee actual results and expected results in the flexible budget for actual units sold

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22
Q

sales volume variance

A

difference between expected results in the flexible budget for the actual units sold and the static budget

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23
Q

standard

A

is the price, cost or quality that is expected under normal conditions

24
Q

standard cost system

A

is an accounting system that uses standards for product costs

25
Q

cost variance

A

measures how well the business keeps unit costs of material and labor inputs within standards

26
Q

cost variance how to calculate

A

AC-SCxAQ

27
Q

efficiency variance

A

measures how well the business uses its materials or human resources

28
Q

efficiency variance how to calculate

A

AQ-SQxSC

29
Q

manyfacturing

overhead

A

valmistus kustannukset

29
Q

manyfacturing

overhead

A

valmistus kustannukset

30
Q

overhead allocated to production

A

standard overhead allocation rate x standard quality of the allocation base allowed for actual output

31
Q

fixed overhead volume variance

A

Fixed overhead cost standard x (direct labor efficeincy standardxpaljonko tuotetta tehtiin

32
Q

management by exceptions

A

occurs when managers concentrate on results that are outside the accepted parameters

33
Q

sunk costs

A

costs that were incurred in the past and cannot be changed

34
Q

differential analysis

A

short-term decisions: regular and special pricing, dropping unprofitable products and segments, product mix, and sales mix, outsourcing and processing further

35
Q

price-taker

A

with little control over pricing.

company is price taker when:produvt lacks uniqueness, intense competition, pricing approach emphasizes target pricing

36
Q

price-setter

A

more control over pricing.

product is more unique, less competition, pricing approach amphasizes cost-plus pricing

37
Q

target pricing

A

starts with the market price of the product and then subtracts the company’s desired profit to determine the maximum allowed target full product cost

revenue at the market price - desired profit

38
Q

cost-plus pricing

A

starts with company’s full product costs and adds its desired profit to determine a cost-plus price

full product cost + desired profit

39
Q

outsourcing

A

ulkoistaminen

40
Q

gross profit marigin

A

net sales-GOGS/net sales

41
Q

gross profit:

A

net sales-COGS

42
Q

weighted-average method

A

keskiarvo

cost of goods available for sale/number of units available

43
Q

inventory turnover

A

COGS/average merchandise inventory

44
Q

average merchandise inventory

A

beginning inventory + ending inventory/ 2

45
Q

High-low method

A

1.Variable cost per unit: laske ylin-alin hinta / ylin-alin kpl määrä

  1. total fixed cost:
    ylin hinta - (1. step x ylin kpl määrä)
  2. total mixed cost:
  3. step x annettu kpl määrä + 2. step
46
Q

contribution marigin

A

paljon rahaa on saatu myymällä- paljon rahaa on menny variable costiin

revenue-variable cost

47
Q

unit contribution marigin

A

paljon yks on myyny- paljon yhen tekemiseen on menny

price-COGS

48
Q

contribution marigin ratio

A

jaetaan unit contribution marigin net sales revenue per unitilla. eli sillä paljolla yks kpl on myyty

49
Q

the equation approach

A

net sales revenue x X -variable x X - fixed cost=0 tai jos halutaan päästä tiettyyn summaan nii se summa. Mutta ratkotaan siis x

50
Q

contribution marigin approach

A

fixed cost + target profit / contribution marigin per unit

51
Q

contribution marigin ratio approach

A

fixed cost + target profit /contribution marigin ratio + fixed cost

kertoo dollareina

52
Q

marigin of safety

A

mikä on break even pointin ja expected salesin välissä

53
Q

marigin of safety kappalaissa

A

expected sales-breakeven sales

54
Q

marigin of safety dollareissa

A

marigin of safety in units x paljonko yks kpl maksaa

55
Q

marigin of safety prosentteina

A

marigin of safety in units / expected sales in units

56
Q

degree of operating leverage

A

paljonko yritys voi nostaa operating incomea nostamalla revenueta

lasketaan: Contribution marigin / operating income(fixed cost)

E BUSINESS (2 decks)

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